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Strategy Briefing

Pharmaceuticals: Pricing Pressures Become New Normal

Jan 2018

US$1,325

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

Drug prices in developed markets will remain under pressure, in line with government-mandated initiatives, expected patent losses, and rising generic penetration. The key players are already losing their profits and thus ramp up advertising budgets and shift towards externalising R&D activities. However, in the longer run, companies can focus on caring for older consumers, and employing new technology either to reduce their manufacturing costs or to improve their products. .

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Overview

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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.

Pharmaceutical pricing pressures will continue

Pharmaceutical manufacturers will continue to face public sector regulatory pricing pressures, as governments aim to contain rising budget deficits. In addition, companies’ profit margins are expected to be negatively affected by expected patent losses. Finally, generic drug consumption and manufacturing is expected to intensify putting further pressure on drug prices.

Companies are expected to continue increasing spending on advertising

As a direct consequence of intensifying pricing pressures, companies witnessed shrinking profit margins. As a result, pharmaceutical makers ramped up their advertising budgets to shield themselves from potential revenue losses. Some, however, maintained substantial investments in R&D hoping to develop the next blockbuster drug.

M&As are set to continue

Although M&As somewhat slowed down in 2016, deal-making is expected to remain strong in the near future. This is partly due to the players’ strategic pursuit to externalise R&D. In addition, companies are increasingly willing to buy out innovation at an earlier stage of development.

Ageing populations ensure ongoing demand growth

Ageing populations in developed countries are expected to ensure continuous growth in demand for higher cost pharmaceuticals. As a result, biologics is set to be among the most lucrative drug sectors, with the greatest demand for oncology, diabetes, and rheumatoid arthritis treatments.

Technology to offer cost-saving opportunities

Pharmaceutical manufacturers can gain from Industry 4 solutions, as new technologies will provide significant production savings.

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Introduction

Scope

Key findings

Pharmaceutical prices lag behind inflation

Pharmaceutical Pricing Pressures

Future factors forcing down drug prices

R egulatory pricing pressures are set to continue

Governments to launch new pricing policies in upcoming years

harmaceutical Pricing Pressures

Company revenues negatively affected by patent losses

Generic and biosimilar consumption is expected to intensify

Biologics competition will intensify with new Asian entrants

Consequences of Lower Price Environment

Consequences of pricing pressures

Pricing pressures to result in shrinking profit margins

R &D-motivated M&As are anticipated to pick up

Companies move towards externalising R&D

Contract manufacturers set to gain from pursuit of externalising R&D

Innovation is shifting towards small companies and universities

Innovation increasingly originates in universities

Players are to continue ramping up advertising spending

Opportunities: What Can Companies Do?

Opportunities: What can companies do?

Growth opportunities in the care for elderly

Non-communicable diseases to drive pharmaceutical consumption

Gaining benefits from underserved areas such as Alzheimer’s

Biologics to provide significant revenue gains

New players to bring turbulence to highly-valued biologics market

Industry 4 solutions to reduce production costs

Industry can gain from employing strategic supply chain solutions

Continuous manufacturing: Way to reduce costs

Convergence of pharmaceutical and technology sectors

Pharmaceuticals gain from merging with technology

Conclusion

Key takeaways

Why buy this report?

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Megatrends

Strategy Briefing

Pharmaceuticals: Pricing Pressures Become New Normal

New Report Guarantee

About This Report

New Report Guarantee

Overview

Why buy this report?

Pharmaceutical pricing pressures will continue

Companies are expected to continue increasing spending on advertising

M&As are set to continue

Ageing populations ensure ongoing demand growth

Technology to offer cost-saving opportunities

Want to find out more about this report?

Table of Contents

Introduction

Scope

Key findings

Pharmaceutical prices lag behind inflation

Pharmaceutical Pricing Pressures

Future factors forcing down drug prices

R egulatory pricing pressures are set to continue

Governments to launch new pricing policies in upcoming years

harmaceutical Pricing Pressures

Company revenues negatively affected by patent losses

Generic and biosimilar consumption is expected to intensify

Biologics competition will intensify with new Asian entrants

Consequences of Lower Price Environment

Consequences of pricing pressures

Pricing pressures to result in shrinking profit margins

R &D-motivated M&As are anticipated to pick up

Companies move towards externalising R&D

Contract manufacturers set to gain from pursuit of externalising R&D

Innovation is shifting towards small companies and universities

Innovation increasingly originates in universities

Players are to continue ramping up advertising spending

Opportunities: What Can Companies Do?

Opportunities: What can companies do?

Growth opportunities in the care for elderly

Non-communicable diseases to drive pharmaceutical consumption

Gaining benefits from underserved areas such as Alzheimer’s

Biologics to provide significant revenue gains

New players to bring turbulence to highly-valued biologics market

Industry 4 solutions to reduce production costs

Industry can gain from employing strategic supply chain solutions

Continuous manufacturing: Way to reduce costs

Convergence of pharmaceutical and technology sectors

Pharmaceuticals gain from merging with technology

Conclusion

Key takeaways

Why buy this report?

Want to find out more about this report?

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